Bank of America Warns: AI Investment Boom Is Showing Classic Signs of Capital Cycle Risk

BlockBeats news, October 16: Bank of America warns that the AI investment boom is showing signs of classic capital cycle risk: surging spending, intensifying competition, and falling prices.

Hyperscaler capex expectations have jumped from $330 billion to $1 trillion, roughly equivalent to 3% of U.S. GDP. Meanwhile, AI token prices have fallen about 50% since summer, and usage growth may not translate into sufficient revenue. The key risk is that AI technology may succeed, but investors will be hurt by overinvestment and declining returns.